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Project approved in May 2004 at a cost of USD46 million
Completed August 2006, USD8 million under budget
Project consisted of 1 mtpa underground mine, crusher and 181 employee houses
Tonnage in line with expectations, grade exceeded expectations
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Phase 1 expansion project
Approved in May 2006 at cost of USD258 million
In May 2007 cost revised to USD340 million
Cost increase mainly due to re-configuration of new concentrator, increase in steel prices as well as the overvaluedZWD
Project consists of 1.2 mtpa Portal 1 (to replace the open cast mine), 1.5 mtpa Portal 4, 2 mtpa concentrator, 715 employee houses and related infrastructure
Project will enable replacement of open cast ore and increase annual platinum production from 97 000 oz to 160 000 oz from FY2011Portal 1 scheduled to commence production in October 2008
Portal 4 and new concentrator to commence full production in June 2010
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OPERATIONAL AND EXPANSION CONSTRAINTS
Alex Mhembere
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Operational and expansion constraints
• Socio-economic environment• General economic collapse• Deterioration of health and education facilities• Deterioration of infrastructure and services
• Empowerment legislation• Electricity• Skills
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Electricity
Power requirements
Zimplats currently supplied at 88kV from Norton at high risk
ZESA failing to meet current national requirements
Internal power sources projected to be inadequate for Zimplats’ expansion program
Power risk mitigation
Assisted ZESA with the purchase of two transformers for Norton substation
Paying ZESA in forex for assured power supply
Agreement in principle now in place to import power direct from HCB
Fund construction of a 330kV substation at Selous
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Skills
Challenges
• Skills flight from Zimbabwe at all levels
• Training facilities deteriorating
• Quality of life falling
Risk mitigation
• Address employee welfare issues
• Embarked on training offensive
• Partnership with tertiary institutions (School of Mines, universities)
• Involvement of other mining houses
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Empowerment legislation
Challenges
• Empowerment bill passed by Parliament
• Mines and Minerals Amendment bill still outstanding
Risk mitigation
• Agreements in place with GOZ for credits on released ground and social spend